SMSF Updates

Condition of release – the cessation of an employment arrangement for a SMSF member aged 60 to 64!

27 Jul, 2012

Where a member of SMSF, aged 60 to 64, is in two or more employment arrangements at the same time, the cessation of one of the employment arrangements is the condition of release in respect of all preserved superannuation benefits accumulated up until that time.

The occurrence of the condition of release in these circumstances will not enable the cashing of any preserved or restricted non-preserved superannuation benefits which accrue AFTER the condition of release has occurred. A member will not be able to cash those benefits until a fresh condition of release occurs.

If a member aged 60 to 64 commences a new employment arrangement after satisfying a condition of release, such as retirement from a previous employment arrangement at or after age 60, benefits in respect of the new employment will remain preserved until a further condition of release is satisfied.